3.5.1 Identification of Findings, Corrective Actions and Observations at ASA-1 Assessment CAR
No Ref Std Finding Area Grade Time
Limits Corrective Action Observation Status Closing
Date 2015.0
1. Minor 2.1.1
The evaluation mechanism for compliance toward the applicable regulations and policies.
Based on document’s review over the compliance toward the applicable regulations and policies, its known that some regulation have not been stated in the document, such as:
Law No. 37 in 2014 and water conservation
Ministry of Forestry Decree No.
60 on 2014 classification of river’s flows area.
Law No. 18 in 2013 related to prevention and eradication on forest destruction.
Law No. 39 in 2014 related to plantation.
Ministry of home Affairs, Ministry of Forestry and Plantation, National Land Agency Collective Decree No. 8 in 2014 regarding the settlement mechanism for land occupation within the forest
Estat e
&
Mill
Minor S-2 The management unit must present the evaluation evidence on the compliance toward the applicable regulations and policies.
Root cause:
The regulations have not been updated because not coordinate with SADV-HO.
Problem Solving:
Coordination with SADV-HO as well as updating the existing regulations.
Preventive action:
Coordination with SADV-HO in early semester minimal once a year for updating the regulations.
Auditor observation:
February 25, 2016
The management unit has shown the regulation list and the evaluation which has been updated in 2015/2016, for example, Statue No. 37 Year 2014, Regulation of Forestry Ministry No. 60 Year 2014, Statue No. 18 Year 2013, Statue No. 39 Year 2014, Regulation of Environmental Ministry No. 97 Year 2014, etc.
Closed February, 25th 2016
area
Ministry of Environment Decree No. 97 in 2014 regarding the handover of responsibility to grant the permit for environment and forestry to investment coordination bureau.
Law No. 66 in 2014 regarding the environment health
Law No. 40 in 2004 regarding the national social insurance system
Government regulation No. 86 in
2013 regarding the
implementation of social insurance.
2015.0
2. Minor 4.6.2.
Special medical examination for spraying personnel.
Based on documents’ review of special medical examination on 7th October 2014 from UPT Balai Hiperkes, Bangka Belitung Province for spraying personnel in 2014, its known that:
LWUE: there were 9 out of 15 spraying personnel who did not followed the special medical examination.
BMSE: 1-spraying personnel (spraying supervisor) did not follow the special medical examination.
Estat e
Minor S-2 The management unit must present the evidence that spraying personnel have participated in special medical examination.
Root cause:
The medical examination was carried out by the Technical implementation Unit of Hygiene Company and Occupational Health in Bangka Belitung which the time and the equipment is limited, other than that the sprayers did not come at the time of health examination activities.
In addition, there is a typing error when ASA - 1 previously written as many as 15 workers but there should be 14 workers.
Problem solving:
All employees are required to do the examination in 2015 by companies that
Closed February, 25th 2016
already have the inspection tools.
Preventive action:
The company has had special equipment for medical examination.
Every worker associated with spraying should conduct a special inspection twice a year by the company.
Auditor Observations:
February 25, 2016
The Company has conducted special medical examinations (cholinesterase and spirometry) to 14 workers in LWUE. The results of medical examinations showed all workers in the fit condition to work.
The Company has conducted special medical examinations (cholinesterase and spirometry) to spray supervisor in BMSE. The results of medical examinations showed the worker is fit to work.
The company can show the evidence of appropriate improvement so that Non Conformity No. 2015.02 stated fulfilled.
2015.0
3. RSPO
Certifica tion System
4.2.4.c
Implementation of Time Bound Plan There was evidence on time bound plan revision for SMART Tbk, for instance Pelakar Mill and its supply base.
However, company cannot present the
- Minor S-2 The management unit must present the evidence of the justified Time Bound Plan revision.
Root cause:
Justification has not been done on a time bound plan if there is a unit that did not materialize the implementation of certification.
Closed February, 25th 2016
(Minor). evidence of the justified Time Bound Plan revision.
Problem solving:
Identifying the readiness of the unit in the certification and justified on a time bound plan.
Preventive action:
Review periodically for time bound plan and create a Justification for a unit that has not been certified in the SMART TBK.
Auditor observation:
February 25, 2016
The company has shown the evidence of justification of time bound plan revision for Pelakar mill unit and other units. Based on the explanation known that Pelakar Mill cannot be certified in 2014 because the designated certification institute has not received evidence that has been certified by ASI so that need to be delayed to 2015, while
3.5.2 Identification of Findings, Corrective Actions and Observations at ASA-2 Assessment CAR
No Ref Std Finding Area Grade Time
Limits Corrective Action Observation Status Closing
Date 2016.0
1 D1.1 Change of Supply Chain Module Based on the audit results of ASA-1 known that SCCS module for CPO Mill selected by Leidong West Mill is a segregation (in 2011 standard), but at the time of ASA-2 audit known that the mill
NC Mill March
2016 25,
The management unit must show the evidence of compliance with the selected requirements of SCCS.
Root cause:
Leidong West Mill still receive FFB from the estate that has not been certified RSPO since March 2015 because Bukit Perak Mill experienced overhoul thus reducing the number of production and
Closed March 22, 2016
received FFB from plantations that have not been certified RSPO since March 2015. The results of interviews and field visits showed that Leidong West Mill is processing certified and non-certified FFB without separating the materials.
divert the FFB from the estate that has not been certified to Leidong West Mill.
Because the lack of communication in the unit, then the transferred FFB is not yet certified, while the SCCS model used is segregation (standard 2011) or IP (standard 2014).
Corrective action:
Statement letter from Babel PC on February 29, 2016 stated that PT MP LWI (LWSM) implementing RSPO SCCS (standard 2014) module D-CPO Mills: IP and since that date only received FFB from the estate that has been certified.
Acceptance of Non Certified FFB last held on February 27, 2016.
The management unit has shown the evidence of kernel BIN washing No. 1 - 6 was held since February 29 until March 3, 2016. The storage tank No. 1 has been washed on 14 to 18 December 2015 and not used until the audit process. As for the storage tank No. 2 conducted washing on February 29 to March 5, 2016.
The management unit also shows the summary of FFB receipt in February and March 2016 which explained that since February 27, 2016 Leidong West Indonesia Mill did not receive FFB from the estate that has not been certified.
Preventive action:
The management unit has conducted socialization related to PT MP LWI (LWSM) is implemented RSPO SCCS (2014 standard) module D-CPO Mills: IP and PC policies about the mill only receives FFB from units that have certified RSPO on March 21, 2016. In the same case namely Bukit Perak Mill experienced overhaul, then FFB will be transferred is FFB from the estates that have been certified.
Auditor observation on March 22, 2016:
The management unit has shown evidence of corrective and preventive measures taken to avoid the same thing repeated. Non conformity 2016.03 stated fulfilled.
2016.0
2 D.3.2 Processing procedures of Certified and Non-Certified FFB
Leidong West Mill has procedures of SCCS but not yet explain the separation mechanism of certified and non certified FFB in their processing.
NC Mill March
25, 2016
The management unit must explain about the separation mechanism of certified and non certified FFB in their processing
Root cause:
Leidong West Mill still receive FFB from the estates that have not been certified RSPO since March 2015 because Bukit Perak Mill experienced overhoul thus reducing the number of production and divert the FFB from the estates that have not been certified to Leidong West Mill. Because the lack of communication in the unit, then the transferred FFB is not yet certified while the SCCS models used are segregation (standard 2011) or IP (standard 2014).
Closed March 22, 2016
Corrective action:
Statement letter from Babel PC on February 29, 2016 stated that PT MP LWI (LWSM) implementing RSPO SCCS (standard 2014) module D-CPO Mills: IP and since that date only received FFB from the estate that has been certified.
Acceptance of Non Certified FFB last held on February 27, 2016.
The management unit has shown the evidence of kernel BIN washing No. 1 - 6 was held since February 29 until March 3, 2016. The storage tank No. 1 has been washed on 14 to 18 December 2015 and not used until the audit process. As for the storage tank No. 2 conducted washing on February 29 to March 5, 2016.
The management unit also shows the summary of FFB receipt in February and March 2016 which explained that since February 27, 2016 Leidong West Indonesia Mill did not receive FFB from the estate that has not been certified.
Preventive action:
The management unit has conducted socialization related to PT MP LWI (LWSM) is implemented RSPO SCCS (2014 standard) module D-CPO Mills: IP and PC policies about the mill only receives FFB from units that have
certified RSPO on March 21, 2016. In the same case namely Bukit Perak Mill experienced overhaul, then FFB will be transferred is FFB from the estates that have been certified.
Auditor observation on March 22, 2016:
The management unit has shown evidence of corrective and preventive measures taken to avoid the same thing repeated. Non conformity 2016.03 stated fulfilled.
2016.0 3
D.6.1 Separation of Certified Products of RSPO and Non RSPO
Leidong West Mill does not separate between RSPO certified products and not the RSPO certified products during the storage and shipping products.
NC Mill March
2016 25,
The management unit must show proof of a certified product separation and not at the time of delivery and storage of products
Root cause:
Leidong West Mill still receive FFB from the estate that has not been certified RSPO since March 2015 because Bukit Perak Mill experienced overhoul thus reducing the number of production and divert the FFB from the estate that has not been certified to Leidong West Mill.
Because the lack of communication in the unit, then the transferred FFB is not yet certified, while the SCCS model used is segregation (standard 2011) or IP (standard 2014).
Corrective action:
Statement letter from Babel PC on February 29, 2016 stated that PT MP LWI (LWSM) implementing RSPO SCCS (standard 2014) module D-CPO Mills: IP and since that date only received FFB from the estate that has been certified.
Closed March 22, 2016
Acceptance of Non Certified FFB last held on February 27, 2016.
The management unit has shown the evidence of kernel BIN washing No. 1 - 6 was held since February 29 until March 3, 2016. The storage tank No. 1 has been washed on 14 to 18 December 2015 and not used until the audit process. As for the storage tank No. 2 conducted washing on February 29 to March 5, 2016.
The management unit also shows the summary of FFB receipt in February and March 2016 which explained that since February 27, 2016 Leidong West Indonesia Mill did not receive FFB from the estate that has not been certified.
Preventive action:
The management unit has conducted socialization related to PT MP LWI (LWSM) is implemented RSPO SCCS (2014 standard) module D-CPO Mills: IP and PC policies about the mill only receives FFB from units that have certified RSPO on March 21, 2016. In the same case namely Bukit Perak Mill experienced overhaul, then FFB will be transferred is FFB from the estates that have been certified.
Auditor observation on March 22, 2016:
The management unit has shown evidence of corrective and preventive measures taken to avoid the same thing repeated. Non conformity 2016.03 stated fulfilled.
3.5.2 Opportunity for Improvement
No Ref Std Descriptions
1 1.1.1 The management Unit provides sufficient information related to environmental issues, especially to the community representatives in Ibul Village (public concern on the water pollution from the mill operations).
2 6.1.4 The management unit performs a review on the results of management and monitoring of social impacts that have been implemented (Observation).
3 6.5.2 The management unit performs a peer review together with Workers Union related to the preparation of Collective Labor Agreement (Observation).
3.5.3 Noteworthy Positive Components
No Ref Std Descriptions
1 - The company's commitment to implement the principles of sustainable oil palm plantation management 2 - Personal competence (Staff) in their respective fields
3 - Has been certified ISCC.
4 - Has been certified Blue Proper.
SPO – 4006a.7 Page 54